DDR Corp. (Beachwood, Ohio) is proactively working to terminate the leases of anchor store locations across its portfolio. The company is working with tenants in the volatile books, electronics, toys and office categories, as well as traditional department store tenants to “right-size” their real estate footprints and free up space for more profitable tenants.
DDR has identified 90 anchor locations, representing 3.3 million square feet of space, in the markets of Boston, Cleveland, Denver, Orlando, Phoenix, Raleigh and San Antonio. According to a company statement, DDR hopes to fill the prime locations at higher rates with new retailers at higher rates. The company says it has already finalized deal terms to take back 21 spaces.
DDR has reached out to several successful brands, including Nordstrom Rack, Sprouts Farmers Market, Ulta, Whole Foods Markets, Five Below, HomeGoods, Fresh Market, Marshall's, Trader Joe's, White House Black Market, Gap Factory, Shoe Carnival, PetSmart and Carter's about filling the prime locations.